Cargotec lines up Kalmar heavy port cranes exit, weighs up options for MacGregor
Following the cancellation of the merger with Konecranes, Cargotec has decided to exit Kalmar’s heavy cranes business and started evaluating strategic options for MacGregor. The move comes as the company refocuses its strategy strategy for higher financial performance through sustainability and growth in profitable core businesses.
Cargotec’s core businesses include Hiab, Kalmar Mobile Solutions and Kalmar’s horizontal transportation business. Cargotec’s vision and breakthrough objectives sustainability and profitable growth remain.
Cargotec mulling MacGregor sale, Kalmar heavy port cranes exit
Cargotec will initiate an evaluation of strategic options of MacGregor including a potential sale of the business. The evaluation covers the whole business area inclusive of its merchant, offshore and services businesses. MacGregor is global leader in sustainable maritime cargo and load handling solutions.
Cargotec will also shift Kalmar’s focus towards mobile solutions and will start planning an exit from the heavy port cranes business. Going forward, Kalmar would offer industry shaping, eco-efficient cargo handling equipment and lifecycle services in the mobile equipment product categories, straddle and shuttle carriers as well as Bromma spreaders.
Hijab at the core of strategy
Hiab is the world’s leading provider of on-road load handling equipment, intelligent services, smart and connected solutions and will be at the core of Cargotec’s strategy. Hiab’s business portfolio will remain the same, but Cargotec plans to further accelerate the development of Hiab’s M&A pipeline.
In addition to the planned actions above, Cargotec plans to review its operational model to support the refocused group. Cargotec’s capital allocation priorities for upcoming 12 months are planned to be acceleration of M&A, research and development investments in electrification, robotics and digitalisation as well as Cargotec’s climate programme Mission Climate.
These planned actions are subject to normal local legal requirements and works council consultations.
Based on 2021 figures Core Businesses would have had sales of €2.6 billion representing approximately 80 percent of Cargotec’s total sales. Core Businesses comparable operating profit margin would have been 10.1 percent while Cargotec’s comparable operating profit margin was 7.0 percent. Service sales would have been 31 percent of Core Businesses total sales.
“This strategic direction and the refocusing of Cargotec demonstrate our commitment to profitable growth, sustainability and the excellence of our people adapting to new challenges. The board is convinced that it is the right time to ensure an accelerated but orderly transition to an even more profitable and futureproof business.”, says Cargotec’s Chair of the Board Ilkka Herlin.